De Beers ends partnership for diamond search in northern Saskatchewan

VANCOUVER – De Beers Canada is ending an agreement with another company to hunt for diamonds in northern Saskatchewan.

A news release posted to both the De Beers Canada website and the CanAlaska Uranium Ltd. site states that De Beers is terminating its project option in the West Athabasca project.

De Beers had signed an agreement with CanAlaska to explore areas of the northwestern Athabasca Basin, noting last spring it could spend up to about $20 million dollars to develop the stakes.

The news release states that testing was done on samples from a number of drill sites, and while it says the Western Athabasca Basin has the right geological and structural setting for the presence of diamondiferous kimberlite, De Beers decided not to continue drilling.

It states that under the terms of the agreement, De Beers has returned 100 per cent of the project to CanAlaska.

CanAlaska president Peter Dasler says the company expects there will be other parties that wish to help test remaining targets in the region.